Kraken parent company Payward posts 33% growth in full-year revenue

Core Insights - Payward, the parent company of Kraken, reported a 33% growth in adjusted revenue for 2025, driven by a 34% increase in transaction volume to $2 trillion [1] - Trading-based revenue constituted 47% of the total revenue of $2.2 billion, with the remainder coming from non-trading sources such as custody, payments, and financing [1] - Adjusted EBITDA rose by 26% to $531 million [1] Company Structure and Strategy - The company has filed a confidential draft for a U.S. IPO and has a corporate structure that separates consumer products from infrastructure operations, similar to tech giants like Alphabet, Meta, and Amazon [2] - This separation is intended to ensure that innovation does not compromise control, risk discipline, or regulatory integrity [2] Acquisitions and Market Position - The new corporate structure reflects the company's strategy to integrate multiple platforms acquired over the years, including NinjaTrader, Breakout, and Backed Finance [3] - These acquisitions led to a 119% increase in daily average revenue trades (DARTs) for futures products [3] Financial Performance - Payward ended the year with $48.5 billion in assets on the platform, marking a 12% increase [4] - The number of funded customer accounts surged by 50% to 5.7 million [4] - The reported revenue figure is adjusted for trading costs and gains or losses on trading activities [4]